Why 29 June is an important day for Cardano (ADA), all about the Vasil hard fork

Last Updated: 4 June 2022

At the end of this month, a hard fork called Vasil will be executed on Cardano’s blockchain. What does this mean and will it have an impact on ADA’s share price?

29 June important date for Cardano

Previous upgrades, such as the Alonzo hard fork, have made Cardano’s blockchain a lot more robust and the network can handle smart contracts. It is time for the next hard fork. We know that since yesterday Vasil is being tested on a public test network. If all goes well, the real hard fork will be carried out on 29 June 2022.

That’s enough time for Cardano and founder Charles Hoskinson to turn on the marketing machine. Sooraj, one of Cardano’s developers, preceded Hoskinson in sharing more details about Vasil on Twitter.

In a series of tweets, Sooraj explained how Cardano’s hard fork will affect the overall stability and connectivity of the network. He further explained that CIPs (Cardano improvement proposals) related to the implementation of the Plutus script will be prioritised.

Four improvement proposals

Vasil includes four such Cardano Improvement Proposals (CIPs). These include CIP-31, which introduces a “new type of input, a reference input, which allows an output to be looked at without issuing it”, as well as CIP-32, which allows “easier communication of date values between users”.

Another improvement proposal is CIP-33, which proposes to add reference scripts to outputs, and to use reference scripts to meet script requirements during validation, rather than having the issue transaction do so. CIP-33 will “make transactions with commonly used scripts much smaller.”

Finally, the hard fork includes CIP-40, which ensures that a wallet no longer requires a minimum amount. If you would like to read through everything in more detail, check out the following links:

How will this affect Cardano’s (ADA) stock price?

You can say a lot about Cardano, but they are good at marketing! Every time an update comes out, which is basically just boring dry stuff, Charles Hoskinson manages to boost ADA’s share price. This is also noted on InvestAnswers’ YouTube channel.

“It always rallies before a hard fork. It’s pretty clear that the spike right now is due to the Vasil hard fork, which has reportedly delivered a lot of great things: a lot more transactions per second, a lot more smart contract functionality, a lot more DeFi capabilities, etc.”

Next, the host of the video (from minute 09:20) looks at what previous hard forks did for the stock price.

“If you look back in history, you can look at the Shelley hard fork in July 2020, Cardano went up 500% and then was, I think, Mary in March 2021, ADA went up 1.100%. Then kwa the Alonzo update and the price went up about 135%.”

Cardano rose to 0.63 euros on June 1, the highest point since the price fell to a low of 0.42 euros on May 28. The youtuber thinks Cardano will outperform Bitcoin and Ethereum.

“We’re currently around $0.65, so it’s not broken, but it deviates and is no longer correlated to the other assets. If you look at the Cardano/Ethereum pair and the Cardano/Bitcoin pair it really breaks out.”

In March, we also wondered what Vasil will do to ADA’s share price. On 17 March, ADA was worth 0.80 euros, which has since fallen to 0.53 euros.

  • Steven Gray

    Steven Gray is an experienced cryptocurrency and blockchain journalist with over 7 years of reporting on the crypto industry across major publications. His proficiency in technical analysis provides him the skills to evaluate complex trading algorithms and AI systems. Steven leverages his extensive network of academics and finance professionals to incorporate expert opinions into his unbiased analyses.

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